CATEGORY

Cleaning Services

Cleaning services mostly relates to commercial and industrial. Workplaces, Offices ,Retail spaces come under commercial and manufacturing plants ,its equipment are under industrial

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Category Alerts


CATEGORY ALERTS

Facility Cobot to automate cleaning tasks

July 07, 2022
alert level: Medium
CATEGORY ALERTS

Australia is witnessing shortage of cleaners and the wages are also increasing

July 12, 2022
alert level: High
CATEGORY ALERTS

Staff shortage crisis in UK

October 11, 2022
alert level: High

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Cleaning Services Industry Benchmarks


Savings Achieved

(in %)

The average annual savings achieved in Cleaning Services category is 7.50%

Payment Terms

(in days)

The industry average payment terms in Cleaning Services category for the current quarter is 62.5 days

Compare your category performance against peers and industry benchmarks across 20+ parameters on Beroe LiVE.Ai™

Category Strategy and Flexibility

Engagement Model

Supply Assurance

Sourcing Process

Supplier Type

Pricing Model

Contract Length

SLAs/KPIs

Lead Time

Supplier Diversity

Targeted Savings

Risk Mitigation

Financial Risk

Sanctions

AMEs

Geopolitical Risk

Cost Optimization

Price per Unit Competitiveness

Specification Leanness

Minimum Order Quality

Payment Terms

Inventory Control

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    Cleaning Services Suppliers


    248,828
    Total Suppliers
    11,089
    Diverse Suppliers
    78
    Normalized Supplier Rating
    Cleaning Services Supplier

    Find the right-fit cleaning services supplier for your specific business needs and filter by location, industry, category, revenue, certifications, and more on Beroe LiVE.Ai™.

    Sample Supplier
    Company
    CBRE GROUP INC.
    Location
    Jackson, Mississipi
    Duns number
    3862211

    D&B SER Rating

    dnb logo

    Up to 3 months

    1 9
    4
    Low Risk High Risk

    The Supplier Evaluation Risk (SER) Rating is Dun & Bradstreet’s proprietary scoring system used to assess the probability that a business will seek relief from creditors or cease operations within the next 12 months. SER ratings range from 1 to 9, with 9 indicating the highest risk of failure. We’ve prepared an infographic to help business owners better understand what influences their SER Rating.

    Moody`s ESG Solution
    ESG Profile

    Company and Sector Performance
    42

    100
    Limited (1)
    ESG Perfomance (/100)
    Environment
    41
    Social
    37
    Governance
    52
    6 Domains Performance (/100)
    Business behaviour
    44
    Human rights
    43
    Community Environment
    22
    Corporate governance
    57
    Human resources
    38
    Security Scorecard
    62

    Threat indicators
    C
    70
    Network Security
    Detecting insecure network settings
    A
    100
    Hacker Chatter
    Monitoring hacker sites for chatter about your company
    F
    37
    DNS Health
    Detecting DNS insecure configuration and vulnerabilities
    D
    68
    Application Security
    Detecting common website application vulnerbilities
    F
    48
    Endpoint Security
    Detecting unprotected enpoints or entry points of user tools, such as desktops, laptops mobile devices, and virtual desktops
    A
    100
    Cubic Score
    Proprietary algorithms checking for implementation of common security best practices
    B
    82
    Patching Cadence
    Out of date company assets which may contain vulnerabilities of risk
    A
    100
    Social Engineering
    Measuring company awareness to a social engineering or phising attack
    A
    93
    IP Reputation
    Detecting suspecious activity, such as malware or spam, within your company network
    A
    100
    Information Leak
    Potentially confidential company information which may have been inadvertently leaked

    Industry Comparison
    cbre.us
    Industry average
    Adverse Media Appearances
    Environmental Issues
    0
    Workforce Health Safety Issues
    0
    Product Service Issues
    6
    Human Rights Issues
    0
    Production Supply Chain Issues
    1
    Environmental Non Compliance Flags
    7
    Corruption Issues
    0
    Regulatory Non Compliance Flags
    2
    Fraud Issues
    2
    Labor Health Safety Flags
    2
    Regulatory Issues
    0
    Workforce Disputes
    0
    Sanctions
    0
    esg energy transition
    30
    Discrimination Workforce Rights Issues
    2
    esg controversies critical severity
    No

    Cleaning Services market report transcript


    Global Market Outlook on Cleaning Services

    • In 2019, the global cleaning services market was valued at $60.25 Bn and is forecasted to grow at a CAGR of 6.3% to reach $88.9 Bn by 2025. With the recent COVID-19 pandemic, the demand is likely to shoot up in all the countries considering the urge the industries feel to keep up the workplace clean and safe for their employees
    • Cleaning services penetration is still low outside Europe and North America.
    • Asia Pacific (APAC) and Latin America (LATAM) are witnessing increasing adoption, due to the efforts by large global buyers to consolidate supply bases.

     

    Global Cleaning Services Market Maturity

    • Cleaning services penetration is still low outside Europe and North America
    • APAC and LATAM are witnessing increasing adoption, due to the efforts by large global buyers to consolidate supply bases

    Global Cleaning Services Industry Trends 

    • The cleaning industry has matured in tandem with other FM services in developed markets such as Europe and the US.
    • In developing regions janitorial services industry trends related to bundling, outsourcing and value-based approaches are still emerging. But within 2018, they will gain strong footholds.
    • Businesses are making huge investments in the proper maintenance of workspaces to ensure an eco-friendly and healthy working ecosystem for their workforce.
    • Market players are embracing the concept of green cleaning which incorporates the usage of natural products such as baking soda, vinegar, and lemons, among others, to clean the office premises. 
    • Rising environmental issues along with the negative effects of using chemical-based products that contain allergens and carcinogens have influenced market players to reinvent their portfolios.

    Global Cleaning Services Market: Drivers and Constraints 

    Drivers

    • Macroeconomic Background: High inflation rates in developing countries directly impact the rising demand for wages. Rises in labor costs are crucial for the cleaning services industry as they drive costs in a direct proportion.
    • Outsourcing vs. Insourcing: Despite the difficult global economic conditions, outsourcing of cleaning services is the preferred model compared to performing such services in-house.
    • The global cleaning industry continues to be profitable, mainly riding upon the growth of the healthcare industry.
    • Vacancy rates have a direct impact on procuring cleaning services for commercial spaces. Vacancy rates are on the decline, providing the impetus for the cleaning and janitorial services industry.
    • In a short period, new technologies, more interoperability among different cleaning equipment, and more players in the market have resulted in higher growth. This evolution of cleaning equipment has become an advantage for cleaning services in the retail industry, which helps complete the task quickly with limited resources.
    • Green cleaning products and procedures will have a higher impact in the future. Hence, businesses should focus on going green and realizing the benefits therein.

    Constraints 

    • Labor costs generally represent 80% of total operational costs. In addition to the native workers, most of the laborers are immigrants and the regulations associated with such workers play a major role in managing cleaning services effectively in a particular country.
    • Britain leaving the European Union (EU) may have negative consequences on the labor supply and thereby poses a threat of increasing labor costs.
    • The emergence of automated cleaning robots that utilize artificial intelligence (AI) to do housekeeping chores is posing a challenge for the players.

    COVID-19 Impact on Marketing for Cleaning Services

    The COVID-19 pandemic has magnified the concerns for hygiene and cleanliness at the workspaces. The easing of lockdown regulations and steady rebounding of the global economy has highlighted the importance of hygiene procedures for offering safety to the customers and employees. 

    Businesses are scaling up the frequency of on-premise sanitization to check and avoid potential contagion. Besides, governments across the globe have imposed various SOPs/guidelines for businesses to adhere to for alleviating the threat of subsequent waves of the COVID-19 crisis. 

    The industrial and commercial establishments have been instructed to conform to these guidelines to ensure the safety of their workforce and prevent any legal action.

    Global Cleaning Services Market Maturity

    High Maturity Regions

    • Countries: US, UK, Australia, Germany, France, Spain, and New Zealand
    • Suppliers: Established service providers have been providing outsourced cleaning services for more than two contract generations.

    Low Maturity Regions

    • Countries: Major parts of Asia, Africa, and South America
    • Suppliers: Owing to lower demand, the cleaning services market is highly dispersed with local service providers, who are more tactical rather than strategic in nature.

    Medium Maturity Regions

    • Countries: The UAE, Saudi Arabia, Qatar, Singapore, Canada, and Eastern Europe.
    • Suppliers: With established global service providers having a stronghold on the market, local service providers are becoming better with respect to their service offerings and quality of services.

    Medium-low Maturity Regions

    •  Countries: India, South Korea, China, Mexico, Malaysia, and Brazil
    • Suppliers: The supplier’s market is largely driven by the presence of multinational FM firms trying to enter into these emerging markets, due to high growth potential.

    Supply Trends and Insights 

    Global / Regional Supplier

    Increase in M&A, Divestments:

    • C&W services, a result of the merger between Cushman & Wakefield and DTZ, is the new brand dedicated to providing facility services.
    • CBRE acquired the facilities management business of Johnson Controls to add depth to their existing service portfolio and ISS is managing their facilities services through Tempo Services Ltd., Australia.
    • In Feb 2018, Clean Harbors acquired Veolia Environmental Services (industrial cleaning), North America and in November 2018, Engie announced that they have acquired SMART Buildings Ltd.
    • CBRE Group was on an acquisition spree and acquired Noveen Consulting who was focusing on healthcare facility owners, following the acquisition of Ramot Group in Israel.
    • In Feb 2018, Clean Harbors acquired Veolia Environmental Services (industrial cleaning), North America and in November 2018, Engie announced that they have acquired SMART Buildings Ltd.
    • In Dec 2018, ISS announced its plans to shut down operations across thirteen countries, predominantly in emerging regions from Asia and Eastern Europe, resulting in cutting down one lakh jobs by 2020 and divesting the resource to other core services.
    • In March 2019, Cushman & Wakefield acquired Brothers Group to enhance its facilities services across Australia and New Zealand.

    Supplier Operation Disruptions:

    • Increasing supply disruptions are due to suppliers’ inability to perform and survive in the market due to extremely high competition, wafer-thin margins, and high expectations from clients.
    • Example: Interserve's insolvency, Carillion's collapse, ISS Facility Services disinvesting operations across 13 countries.

    Customized Services:

    • Customization helps in increasing the integrity of services and brings a high level of expertise. Buyers encourage such suppliers as it reduces the internal training costs for the buyer.
    • Sodexo has upgraded its managerial skills by partnering with Sunshine Coast TAFE.

    TAFE.

    Tier-2/ Local Supplier

    • M&A: Temco Service Industries Inc., a US-based cleaning services firm, was acquired by Atalian, a leading European facility services firm, as a strategic initiative to enter the US market.
    • Self-performing Capability: Tier-2 suppliers prevalently self-perform services, which will eventually reduce the troubleshooting escalation matrix for the buyer.
    • Innovative Service Offering: Suppliers are coming up with new contract models and service options for buyers.
    • Sustainability Solutions: A programmed facilities management company introduced a new service called sustainable solutions, which takes care of energy, water and emission savings. This shows that the suppliers are interested in providing critical services.

    Engagement Trends

    • Most Adopted Model Globally: Bundled sourcing strategy.
    • Why: To achieve spending visibility and cost savings.
    • Contract Length: Three to five years, with an option of contract extension based on performance linked with SLAs.
    • Pricing Strategy: Shifting from value-based pricing to target or performance-based contracting and linked with SLAs.

    Why You Should Buy This Report

    This research study on the cleaning services industry offers a comprehensive analysis, industry size and forecast, growth drivers, trends, and challenges, as well as competitor analysis covering numerous vendors.

    The study provides an updated assessment of the current global cleaning service marketing scenario and the overall market environment. It includes the end-user segment and geographical landscapes. 

    The data presented in the report is reliable and based on holistic research - both primary and secondary. Furthermore, the cleaning market research study provides an overall competitive landscape and comprehensive vendor selection approach and analysis using quantitative and qualitative research to project accurate market growth.